Dell Beat Estimates To Report $23.4bn Revenue
US computer maker Dell Technologies has beaten estimates to post a nearly US$23.4 billion in revenue for the second quarter.
But the company has warned incoming tariffs and declining demand in China could hurt future profits, according to Reuters.
Beginning on Sunday, additional 5 per cent tariffs on goods out of China will come into effect in the US.
Dell’s chief operating officer Jeffrey Clarke said the company will increase prices to offset the increase.
“Our costs are going to go up and we will have to move price,” Mr Clarke told a conference call.
Server sales fell 7 per cent to US$8.6 billion, but sales were up 1% in China and Dell expects to increase market share in North America, Europe, the Middle East and Africa this quarter.
The client solutions side of the business jumped 6 per cent, with desktop, laptop, tablet and accessories doubling its operating income to US$982 million.
Total revenue for the second quarter rose 2 per cent to $23.37 billion, after analysts estimated US$23.24 billion.
Net income was reported at US$4.5 billion, compared to a loss of US$461 million for the same quarter last year.
Shares rose as much as 11 per cent before closing at US$46.77, but it has still declined 4.3 per cent over the year.